Otago's gross domestic product (GDP) rankings for 2015 are well down the list of those of the country's 15 provinces and a 2015 decline in agriculture was offset only by some construction sector gains.
In 2014, a boost in agriculture drove Otago's GDP up 7.4%, but a 2015 decline in the agriculture sector cut the annual growth increase to just 2.2%.
While the data may appear relatively flat, chief executive of the Otago Chamber of Commerce Dougal McGowan was upbeat, despite the ‘‘below average'' statistics, saying the province was at least in a ‘‘positive trend'', and citing buoyancy in manufacturing and business expectations.
‘‘Eight years ago, we would have been treading water, if that. We're just not moving as fast as we would like,'' he said when contacted.
The Statistics New Zealand data said that ‘‘Otago's GDP increased 2.2%, primarily due to an increase in the construction industry, which helped offset a decline in agriculture''.
Mr McGowan said the whole primary sector was ‘‘subdued'' at present. There were declines in agriculture, log exports and mining, and he added that the latest dairy declines were yet to influence GDP data.
While Queenstown and Cromwell were doing particularly well in construction, Dunedin was also contributing with hotel redevelopments, building projects at the university and new-build homes, Mr McGowan said.
‘‘[Building] consents during the fourth quarter were up considerably across the region. The university spend is one to watch in the future,'' Mr McGowan said.
Auckland's GDP for 2015 was up almost $5.7billion, to almost $90billion, and Wellington and Canterbury were both above $30billion, up
$1.2billion and $2.3billion respectively.
By contrast, Otago's $10.2billion 2015 GDP headed up the bottom 10 provinces, each with GDP contributions of $10billion or less.
‘‘You can't underestimate the value to Dunedin of conferences and one-off events at the stadium,'' Mr McGowan said.
Gisborne, Marlborough and the West Coast were the bottom three provinces.
Over the past five year's Otago's GDP has risen 21%, but that was below the national gain of $24.2%. However, the percentage of its contribution to New Zealand's overall GDP fell 0.1% during that period. Otago's share of the country's GDP for 2015 was 4.2%.
GDP rankings
(per capita)
National average: $52,953.
Taranaki: $75,941 (highest).
Wellington: $69,574.
Auckland: $56,997.
Otago: $47,671.
Northland: $35,103 (lowest).
Source: SNZ
